Accounts Receivable Insurance Protects Solvency

There are a number of events that are completely out of your control and can affect nearly any company at any time. Accounts receivable insurance can shield you from slow pays and closures, due to:

• Natural Disasters: A natural disaster, such as a tornado, hurricane, earthquake, and more can cause your customers to experience major financial difficulties or close their doors altogether. Hurricane Katrina, for example, had a deep impact on many southern countries.

• Foreign Policy: Changes or political events in foreign countries can dramatically inhibit your client’s ability to make agreed payments.

• Bankruptcy Fallout: This is a concern in any economy, but particularly during a recession. For example, the Kmart bankruptcy and the Enron scandal had widespread effect on their payables and vendors.

ARI Global can take a discriminating look at your customer base, assess your risk level, and help find the right accounts receivable insurance to guard you from the routine occurrences that affect your bottom line, as well as these more catastrophic events.

As with any insurance, accounts receivable coverage is extended as risk protection. Accounts receivable insurance protects a company’s balance sheet by helping them determine good risk and avoid bad risk. Accounts receivable that encounter any of the unforeseen circumstances detailed above may experience catastrophic loss—don’t let it affect your bottom line.

Work with an ARI broker who will help assess your risk threshold and protect your assets with insurance for accounts receivable.